Export in itself is a very wide concept and is one of the oldest forms of economic transfer that occur in large scale between the nations that have fewer restrictions on trade such as tariffs or subsidies. Exports play a very crucial role in any country’s economy because it not only helps in international trade but also stimulate the domestic economic activity as well by generating more employment opportunities, production, services and revenues. Most of the largest companies in the world operating in the advanced economies drive a substantial portion of their revenues from exports with other countries. Lot of preparations is required by an exporter before starting an export business.
To start export business, the following steps may be well taken care of
Establish an Organization:- One of the first step in moving in the direction of export business is to open a partnership firm/Company or a sole proprietary concern as per the procedure with a name and a logo of the company.
Open a Bank Account:- Open a bank account, a current account with an authorized bank to deal in Foreign Exchange.
Obtain a Pan Number: - It is necessary that every importer or exporter must have a Permanent Account Number (PAN) from the Income Tax Department.
Obtain Importer-Exporter Code Number (IEC):- An ICE is a mandatory 10 digit number which for undertaking any import/export. To get an IEC number an application can be submitted to Regional authority of DGFT in a form ANF 2A along with all the necessary documents.
Registration cum membership certificate (RCMC):- For availing authorization to import/export or to get any benefit or concession under FTP 2015-20 the exporters are required to obtain RCMC which is issued by the concerned Export Promotion Councils/FIFO/Commodity Boards or Authorities.
Covering risks through ECGC:- When you are exporting to some other countries there are certain risk factors involved with it. These risks can be covered by an appropriate policy from Export Credit Guarantee Corporation LTD. (ECGC) to protect themselves against non payments.
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